2024 (6) TMI 1415

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....It is engaged in the business of providing credit facilities to its members. The Return of Income for the assessment year 2020-21 was filed on 26.09.2020 declaring Nil after claiming deduction of Rs. 2,29,99,903/- u/s. 80P(2)(a)(i) of the Act. The case was selected for Scrutiny under CASS. Statutory notices were served on the assessee to file certain information. On perusal of the balance sheet, the Assessing Officer (AO) noticed that the assessee had shown gross receipts of Rs. 9,60,27,199/- which is inclusive of interest received by the appellant from various cooperative banks amounting to Rs. 2,56,80,764/-. A show cause notice dated 12.09.2022 was issued to the assessee to justify the claim of deduction made u/s. 80P(2)(a)(i). The Assess....

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..... The issue is no more res integra as the same is covered by catena of decisions passed by the Pune Benches allowing the deduction u/s. 80P of the Act. 8. The Co-ordinate Bench of the Tribunal in the case of The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society vs. ITO in ITA No. 84/PAN/2018 for A.Y. 2012-13 order dated 27.05.2022 held in favour of the appellant society. The relevant paragraphs of the said order of Co-ordinate Bench of the Tribunal (supra) is reproduced herein under :- "8. We heard the rival submissions and perused the material on record. The only issue in the present appeal is pertaining to the allowability of deduction under the provisions of section 80P(2)(d) of the Act. On....

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....pra) and having noticed the divergent views of the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Co-op. Ltd. vs. ITO, 55 taxmann.com 447 and the Hon'ble Delhi High Court in the case of Mantola Cooperative Thrift Credit Society Ltd. vs. CIT, 50 taxmann.com 278, decision of the Hon'ble Delhi High Court in the case of Mantola Cooperative Thrift Credit Society Ltd. (supra) had not been preferred to view of the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Co-op. Ltd. (supra). The relevant observation of the Pune Bench of the Tribunal in the case (supra) is as under :- "9. The Pune Benches of the Tribunal in Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The Pr.CIT (....

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....of the Act on interest earned by the assessee co-operative society on investments made in co-operative banks. In that case, the assessee was engaged in the activity of marketing agricultural produce by its members; accepting deposits from its members and providing credit facility to its members; running stores, rice mills, live stocks, van section, medical shops, lodging, plying and hiring of goods and carriage etc. It was in that background of the facts that the Hon'ble High Court held that the assessee could not claim deduction u/s. 80P(2)(d) of the Act. When we consider the impact of this decision, it turns out that the same is not germane to case under consideration in view of the position that the claim of the instant assessee is d....